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Presentation, discussion, and possible action on a request for an extension of the previously approved deadline to Place in Service for 3606 Cockrell Hill
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RECOMMENDED ACTION
recommendation
WHEREAS, 3606 S Cockrell Hill Road Senior Living was awarded 9% housing tax credits during the 2024 Competitive Housing Tax Credit cycle;
WHEREAS, the Development Owner executed a Carryover Allocation Agreement that included certifications stating each building receiving an allocation would be placed in service by December 31, 2026;
WHEREAS, the Board previously approved a request for force majeure treatment in 2025, that extended the deadline to be placed in service by six months to June 30, 2027, which is earlier than the allowable federal deadline of December 31, 2027; and
WHEREAS, the Applicant has requested that the Board approve extending the placed in service deadline the additional six months to the allowable federal deadline;
NOW, therefore, it is hereby
RESOLVED, that the request to treat the matter under the force majeure provisions of 10 TAC §11.6(5) is approved, and that the 2024 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development.
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BACKGROUND
|
Development |
3606 S Cockrell Hill Road Senior Living |
|
Target Population |
Elderly |
|
HTC Award |
$2,000,000 |
|
City |
Dallas |
|
Total Units |
120 |
|
HTC Units |
88 |
|
Initial Year of Award |
2024 |
|
Extension Requested |
Six months |
3606 S Cockrell Hill Road Senior Living is a 120-unit mixed-income development located in Dallas, Dallas County. The development received an award of 9% Housing Tax Credits in 2024 and was approved for force majeure treatment in June of this year, but with an earlier deadline to place in service than is federally allowable. As a result, the current deadline to place in service in June 30, 2027.
The request states that all parties were on track to close in October, but the federal government shutdown beginning October 1, 2025, has delayed closing due to the Federal Housing Administration (FHA) financing in the deal. HUD had previously advised the owner that a firm commitment was imminent, but since it was not issued before the shutdown, the Applicant is delayed indefinitely until the government reopens. The owner states that all parties continue to work diligently, and once operations resume, the firm commitment is expected within a week. Rate lock and closing are expected to follow within 30 days. Because the reopening timeline is uncertain, the placed-in-Service deadline must be extended as a risk management measure for the investor. Originally, the project was on schedule to meet the June 30, 2027, deadline with the investor-required 90-day cushion, but the delay has eliminated has pushed the construction completion within 90 days of the deadline. If the government reopens in November and closing occurs mid-December, construction will complete in April 2027, which is close to the current deadline. The owner has requested an additional six-month extension to December 31, 2027, to accommodate the delay and ensure timely completion.
IMPACT OF BOARD DECISION
If the Board approves the request:
• The new 10% Test deadline will be July 1, 2026.
• The new placed-in-service deadline will be December 31, 2027.
If the Board denies the request:
• The current placed-in-service deadline of June 30, 2027, remains in place.
• The Development Owner may either meet the existing deadline, return the credits, or have the award terminated for failing to meet the deadline.
• Returned credits will first be reallocated within the original subregion in accordance with 10 TAC §11.6(2). If no pending applications are eligible within the subregion, the credits will be added to the statewide collapse for reallocation.
This request has no impact on any funding source other than the Low Income Housing Tax Credit program.
RECOMMENDATION
Staff recommends approval of the request to extend the previously approved deadline to Place in Service for 3606 S Cockrell Hill Road Senior Living.